Question: PLEASE DO NOT COPY FROM OTHER POSTS ON CHEGG BECAUSE THEY'RE DIFFERENT NUMBERS!!! 3. Suppose Dearborn Company considers using a public warehouse at St. Louis
PLEASE DO NOT COPY FROM OTHER POSTS ON CHEGG BECAUSE THEY'RE DIFFERENT NUMBERS!!!
3. Suppose Dearborn Company considers using a public warehouse at St. Louis to lower logistics costs between its factory and its customers. Shipments currently are made directly from the factory in New York. There is a $15/cwt. handling charge at the warehouse. Below is the information about direct shipments and shipments through the warehouse.
Direct shipments
| Factory | Customer | Shipment volume, lb | Transportation rate, $/cwt. |
| New York | Boston | 10,000 | 17.42 |
| New York | Cleveland | 12,000 | 24.12 |
| New York | Dallas | 8,000 | 52.21 |
| New York | Seattle | 10,000 | 57.09 |
Shipments through the warehouse
| Factory | Warehouse | Shipment volume, lb | Transportation rate $/cwt. |
| New York | St. Louis | 40,000 | 17.65 |
| Warehouse | Customer | Shipment volume, lb | Transportation rate, $/cwt. |
| St. Louis | Boston | 10,000 | 31.42 |
| St. Louis | Cleveland | 12,000 | 11.12 |
| St. Louis | Dallas | 8,000 | 14.21 |
| St. Louis | Seattle | 10,000 | 37.09 |
Please calculate the logistics costs of these two alternatives. Should Dearborn Company use the warehouse to do the shipments? Why? Please also discuss pros and cons of these alternatives.
PLEASE DO NOT COPY FROM OTHER POSTS ON CHEGG BECAUSE THEY'RE DIFFERENT NUMBERS!!!
PLEASE TYPE DO NOT HANDWRITE!
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